Exam 13: The Aggregate Demandaggregate Supply Model

Which of the following would cause an increase in employment in the short run?

The model used to study business cycles is the ________ model.

The wealth effect is best described as resulting from an)

If short-run equilibrium output is above full-employment output, then in the long run input prices will

Which of the following would cause an increase in the price level in the long run?

If workers actively demand pay increases when the price level is rising and are willing to accept pay cuts when the price level is falling, then the short-run aggregate supply curve would be

Which of the following would cause a downward movement along the aggregate demand curve?

Refer to the following figure to answer the next questions. -Based on the figure, if the economy is at point F, then in the long run, we can expect

When prices in the economy have not fully adjusted, we say that

Supply shocks always cause short-run aggregate supply to

Explain how a change in real wealth can sometimes cause a movement along the aggregate demand curve and how sometimes it can cause a shift of the aggregate demand curve.

During the latter part of the 1990s, firms purchased new computer systems so that they could establish web sites and eventually online ordering systems. How is this likely to impact the aggregate demand curve and the loanable funds market?

The table identifies annual gross domestic product GDP) in billions of dollars) for country X. Year GDP Year GDP 2006 1,107 2011 2,614 2007 1,397 2012 2,460 2008 1,695 2013 2,465 2009 1,667 2014 2,417 2010 2,208 2015 1,774 Based on the table, during which yearss) was country X most likely to have been in a recession?

A rightward shift of the long-run aggregate supply curve means there has been

An increase in short-run aggregate supply could be the result of an)